TRANSFER PRICING AND TAX COMPLIANCE IN ROMANIA AND POLAND: A COMPARATIVE STUDY WITH INSIGHTS ON AI’S ROLE IN MODERN TAX ADMINISTRATION

This paper investigates the regulations of transfer pricing taxation in Romania and Poland with respect to the assertion of implementing OECD Guidelines and its infliction on tax avoidance attitudes. The paper analyzes the legislation and administrative practices of transfer pricing regulation in both countries and to what extent they comply with international standards provided by the OECD framework using a comparative method. In addition, the study employs survey data and qualitative analysis to explore public attitudes and perceptions of tax evasion. The study seeks to identify such potential factors by analyzing the interplay between the regulatory environment and public opinion. Key findings indicate that both Romania and Poland have adopted legislation in accordance with OECD recommendations, but there are differences in the application of these laws and their effectiveness. Differences in compliance levels may stem from differences in the levels of public trust in tax authorities and perceptions of fairness of the tax system. High levels of communication are key for the success of tax policies, the study shows. The study highlights the importance of effective communication and transparency in tax policies to foster public trust and promote voluntary compliance. It underscores the need for policymakers to consider not only the technical aspects of tax regulation but also the broader socio-economic context and public sentiment in shaping effective tax administration strategies. Overall, this research contributes to the understanding of the complex interplay between regulatory frameworks, compliance behavior, and public perceptions in the context of transfer pricing taxation, offering insights for policymakers and tax authorities in enhancing tax compliance and governance.